Carnival Corporation & plc (CCL) 27 Mar 232023 Q1 Earnings call transcript

Good morning. This is Josh Weinstein. Welcome to our First Quarter 2023 Business Update Conference Call. I'm joined today by our Chair, Micky Arison; our Chief Financial Officer, David Bernstein; and our Senior Vice President of Investor Relations, Beth Roberts.

Before I begin, please note that some of our remarks on this call will be forward-looking. you cautionary refer press in must release. I to statement the today's Therefore,

last remain XXXX. update, trajectory with business Consistent our we further the as closed on gap to we upward an

season, We experiencing and extended into are later early, year. a wave has still the gained which record strength started

traction drive We demand favorable the continue our to based to these making ongoing globally. expect on trends we're effort to

to million measures: quarter, while now to in which Revenue, points our on in outperformed prior occupancies increasing to on the headwinds capacity, $XX costs, XXXX XX above or overcoming on XXXX sequential in our being around members EBITDA first quarter, our our we gap amazing in world. the second points XXX,XXX price less all XXXX In occupancy the QX fuel We just improvement earnings, is to adjusted We from and levels. over historical since of summer. and had in well anticipate from guidance XX team from the dedicated occupancies currency X this efforts way away Thanks guidance. QX our points

outsized we our the higher Equally throttle revenue on to ticket also of the opaque side onboard cost have where maintaining important, channel prices and growth not back lost while on we drove also continue sight business.

seek elaborate and did reinvesting adjusted We David taken greater are to our We working will costs cost cash to free and flow, our continue advertising opportunities on. but in path accelerate still remain support the of mitigate sales will profitability. build our during back four We increased and while hard that reflect demand. to strong nimble update produce to guidance inflation quarter to to aggressively have which future years EBITDA decisions primarily

we're items. billion expecting $X billion year, of by being adjusted adjusted XXXX's two $X.X EBITDA of the record midpoint. driven gap primarily The EBITDA to For is at the

which XXXX, us expect through we gap we cycle our year. is to this as behind to First occupancy XXXX be

from discussed that not longer-duration these on protocols we primarily year and the booking early most this delayed for feel well voyages voyages, place results to changes disparate trajectory. land-based did as as in exotic As given close-in but the the window of COVID in slightly the the last were European alternatives during deployment improving call, recovery we

four elevated cost is a XXXX. helped compared currency fleet In continue has and inflation our to significant the and efforts mitigate to our of due prices of strength in even of fuel to course, work which, Second per drag optimization actuality, years demand generation changes further. will diems to us resulting offset to

be per to holding and a ALBD back. basis expectations XXXX roughly quarter, currency levels, back better to first constant than we price our XXXX fuel EBITDA On were our in and to XX% halfway

way entirely of in yield We gap line to over rival and fuel and expect that exit us our the in levels offset than net are back further to results more channel drive we continuing opaque to allowing from activity, million to we of our us second and occupancy the to X/X XXXX the we With higher positioned prices seeing pull generation continue the price ticket drag to currency demand close back well time. Each be point quarter back year. $XXX XXXX. bottom as the in improvement progress as

news in March, is history, bookings that our the the we end, our with record in expectations and remainder has weekly the booking revenue had volume week that company's has volumes Friday into started booking achieved volumes ever our our in of It booking this build. continued for February. And wave for best year. the supporting last continued strength good to been early phenomenal. and highest quarterly season Black To actually wave has We

very Of better. to course, even we're hard working do

In February. record booking and excess our new are booking volumes to in records North every the months for January North single for Carnival to XXXX our levels times X week breaking in brand been continues running of Booking and last peak forward, us now American lead propel America, back brands have levels.

European strengthened catching as all winter Demand more are is recently U.S. for concerns the and period up our exit recovery fade. trends improving heating market cycle. the home across brands in the and has regions to Demand we

evidencing and booking booking curve. a fact, record European producing lengthening for strong volumes In well, demand continued our in brands reached the a as close-in

of two noted, beginning Asia there As Australia now cycle. while behind, the the one a still we with this previously summer. successfully about And is terms Taiwan and we operations ships about in U.S. years is recovery in in the Japan behind year resumed

alternate on Turning building address not our our while to million remaining pre-pause presence the for mobility to right-size scale the accounted has fleet. cruise to travel, brand X still The we of brands Costa actions our taken of working. portfolio into Costa. strength are To by this, Costa our country for capitalize guests assets reopened international a as which we've was China. deployments the The for the and leaned of significant we leveraging

Costa strong Following at Venezia a Line reaching nearly level be to of support enter occupancy for and quarter. And style its fun of remaining Carnival highly third Italian transfer the demand, has strengthening to able idle the Cruise will our XXX% is with faster pace. brand, successful launch the received already capacity

protocols, time. close to we to Overall, land-based to even offerings enabling unwarranted an XX% alternatives, on onboard XX% playing us are gap unprecedented field and to value the over normalized with land-based

consideration source partners vacations, incremental capture our We're by pent-up large on loyal levels. who high We cruise capitalizing are guests. to among efforts new well guests. of building This penetration increase our agent awareness guests and cruise of helped a as base for been we new demand to on will ongoing has our to satisfaction critical low for remain travel demand given cruise and positioned the

engagement. the of our support exceeding dividends. training say several partners with activity And past showing trade in us advertising and that to delighted paying trade rebound this recovery our fantastic XXXX support levels am quarter investment trade our is sales in a with with and clearly brands as we is I increased its

example, has propensity for P&O a synonymous high also upsizing P&O been UK brand three enjoying awareness not book UK. experienced last in surprising has brand the been Cruise TV presence Cruises, Not has as the This only cruising advertising with For result, a correlation the given bookings but we've TV the our UK. awareness is over the and in record in the measurable brand months. to between increase

Arvia Arvia two weeks ago. well less amplified amazing Olly than has P&O godmother, in Barbados is awareness and event the new Prime the bar like with industry's and Cruises brand unprecedented The forward got of escape Mia Barbados, naming over Minister chart-topping been and incomparable outlets. the our XX Scherzinger; guest The fabulous it's taking and Mottley. XD with first singer, dining experiences of featured Murs; UK the publicized room, Nicole submarine

capacity XXXX have growth excitement representing compared the delivered to We retaining while from our ships, newly X.X% still a nearly XX and capacity. of measured XX%

returning following Line, P&O optimization. Carnival weighted And fleet Cruise portfolio towards importantly, UK, our our growth three of brands: and Cruises AIDA and our is highest

been market and in drive As the calls, resulting the acquisition and to to on on sized appropriately the lowest market target board on deliver amazing demand at cost, potential, generation higher. Promoter guest hone to drive advocacy and capability an capacity Net strategies brand support this identified clearly possible road actively that experience target is their working maps they to have revenue markets, overall with time, previous I've mentioned and on help each growth ensure over generation to Scores

These efforts are well underway.

all source We have audiences and the in refreshing resize markets post-pause. by major segmentation to brand confirm across are or process our research target of

fine-tune and to attract loyalty. Our marketing differentiators, new-to-cruise brands have we are each positioning brand's guests and and efforts identified these insights clear leveraging to increase

we've an new-to-cruise America Princess, example, Porsche brand will partnerships affinity demand to For guests. that like brand drive Club resonate new efficient with a target is way developed which its for of to

We enhanced with campaigns to storytelling. we've television most new including multiple awareness. major media launched in into channels, new increase and digital have emphasis markets regional on marketing leaned across And video for homeport-driven national media

Better new views TikTok had wave In XX has fact, counting. and Together, AIDA's campaign, on million

conversion We are online and redesigning higher to onboard traffic, improve sales. achieve websites increase pre-cruise

as onboard revenue. increase engagement our capturing refining as incremental apps to onboard are communication and We well

refining fine-tuning generation optimization impressive engine search testing with new performance and digital our approaches lead continuously are marketing efforts, results. We

As Costa has and just digital examples, an last Holland driven six America was fastest-growing recently named in XX% brands to top lead months. the increase just over XXX the in generation

times guests brand is growth. the service that the resulting bolstering support are sales in to of And testaments increased These levels Our and and reduce first all of web volume to the call sales XX% our of support. XX% the already investments visits our And over XXXX XXXX, our are new of success address to and measured up our which multiples above. in from are in fact, reached we're quarter. advertising capacity

management to further occupancy earlier and advance, out our tools drive opening sharpening increased to push programs. support revenues builds and the We booking learning strategies deployments are incremental new bundled and also testing package curve offers in and We're pricing upgrade revenue through to further.

and we reducing policies using cancellation insights already actively sharing through do. low cross-brand to are fare everything we deposit structures. guest new learnings in We are aid and And levels to changes

these all efforts time. to And our efforts improvement. We yield recognize while have brand's it's we of net over urgency drive to sense a further working, build

And monetize we of Alaska. our an margins. a fact yields guests on Bahama and opportunity land-based strategic Grand destination efforts, our being Moon Carnival To aid voted also which with Line Caribbean advantage the best and industry-leading expansion deliver these we're our yet, assets in and we in Cruise our to of private to is revenue Half In Cay, also port. Caribbean leverage higher tailored largest developing drive consistently to to Caribbean, further are building the have island. It's course, meaningful wow designed

of Importantly, deliver reduction itineraries, our is consumption this lower carbon to located efforts. wide fuel array development a furthering strategically

most unique strategic Alaska, we have Glacier Bay. and in as to across far, the featuring coaches unmatched an deliver iconic by motor rail land-sea the well hotels, footprint of packages as a lifetime itineraries And

total credits quarter, at to rates. export maturing way available effectively debt not are our fund We've ships, only to The Turning that's to bringing structure. attractive capital an new serve remaining roll billion. two $X.X export they credits to completed attractive also more this but the

credits years available by In export of coming majority to be be fact, the will few replaced credits new the drawn. next due export in

export debt we a to preferential of a our similar interest structure rates. remain As low to at mid-single-digit expect result, portion credits

start addressed August to renewal forward revolving David retain XX-month We of $X.X of and of credit until billion off build to to current the The agreement. XXXX an liquidity of $X.X our also our and provides creative the treasury commitment revolver allows window of us on Hats proactively benefit billion. the team.

We remain capital including new making decisions, allocation in builds. disciplined

ships X order and there XXXX, is We have second our plus this through be to which on lowest book luxury our none order Seaborne in expedition in decades, incredible delivered will year. be XXXX, for ship later

and deposits for strong adjusted flow this to customer prolonged double quarter up full year. a contributing are running digits, turning Following season, and free positive wave cash the

we growth as set increases demand up and in are deposits package benefit for sales. We our forward from going bundled offerings increasing customer pre-cruise structurally higher in and

While we our billion we'll near-term liquidity, structure, positive, over be issue are look of we line. behind equity. profile adjusted always excess liquidity the have the committed pay down positioned to positioned $X bring refinancing to And more free to with opportunities well are and and cash to from CapEx incremental maturities opportunistic credit intention forward hand, our well with believe us, industry-leading at revolver our financings for no reduced in renewal export bottom revenue year we going to expected cost debt

from back birthday durable time, hire improvement growth, us enterprise the focused expect margin our delevering toward holders. credit on equity per on and to to revenue investment-grade available holders value to and ROIC. company shift driving Over are ratings for the We propel increased path we EBITDA debt

to end ocean can't our hard our sail, of we fulfill by every touch. praising our mission vacations providing honoring we support the guests without unwavering who I so to and cruise happiness for we again every agent team integrity of shore, unforgettable extraordinary creating call the once while day our and work visit partners members, their travel and life ship place

incredibly am company Our which by powered our people, I is best-in-class something for thankful.

that, turn call I'd to to David. like over the With

Thank you, Josh.

constant and per Before otherwise costs please adjusted reference to all prices, my ticket I in cruise net be stated. will fuel, diems note begin, unless without currency of

I'll I'll of provide start position. a results. recap our cumulative first today Then of XXXX summary our with quarter book a

some give additional finish guidance will I full up our year on color Next, our describing financial and XXXX position. March

measures. all guidance indicated, we Josh the As quarter, on in outperformed first our

million was of which ticket The million X.X% was improved $XX diems For adjusted our was the quarter, million driven the two net $XXX guidance. First, per prices of $XX by without adjusted and favorability higher $XX of between occupancy in first $XX December as things: EBITDA and our timing million, up both above second, fuel million midpoint quarters, currency. over were prices favorability expenses improvement unfavorable higher in which to from by of of impact a due offset net XX%; both of and the cruise were costs fuel partially

the three results. before have leaving first additional comments quarter I

the First, our demonstrating other offering. first quarter that elevated with onboard the half well back as our continued of the and as of consumer for is an continued strength revenue consistent XXXX, in at pace quality the onboard

streams, offering accounting bundled XXXX, the we call, as revenue remind have that However, December capture and past, that incremental changed for package revenue the the you we allocations. to during the in I indicated want done conference to reevaluated I we

result, ticket and to revenue less per will allocated and onboard, both XXXX, and a XXXX the the As of to onboard in more be diem XXXX. less impacting in revenue other comparisons

reason list diems. another to cruise such Just per the revenue net best is our why judge add our way performance to metrics revenue to reference total of by reasons to as the

over occupancy but XXXX. Second, a still to gap XX% quarter first the was for

gap to quarter occupancy in higher close expect because as year-over-year improved progress first We XXXX, the improvement. revenue by up the of continue for driven XXXX, EBITDA adjusted through setting starting us to we

aided remaining conference quarter diems per by which mix down we quarters which and mix XXXX, benefited exotic this first net occupancies, as to from compared was third, of last particularly voyages discussed held the the And the that cabin brand XXXX quarter our on our for three call.

Turning our position. book cumulative to

of ticket sales bundled the offerings strong booked surpassing quarter quarter historical with higher is the future record The a cruise first the normalized in when For our previous range. higher the billion, of and advanced strong along cumulative that prices remainder $X.X cumulative resulted with achieving book of a occupancy position pricing at first XXXX, package increase. credits total record deposits for to position in pre-cruise strong booked has compared is customer $X.X of end billion, solidly XX% XXXX

additional now Full capacity a idle quarter full With March XXX% remaining on thought, expect to able we to will capacity be pace Next, the We from higher is reenter full our year growth will expected I some when originally each growth be give to XXXX XXXX strengthening XXXX. levels occupancy guidance. faster capacity its XXXX compared be year at as year Costa or compared XXXX. to color than X.X% close our for increasing gap as December guidance. the on occupancy demand, to

front, throughout strong up full expect XXXX improving XXXX pricing the for net and to net to with be compared quarter. the a as diems quarter year in On every X% per XXXX X% XXXX compared to to yields exceeding XXXX fourth we

three for diems net the from as remaining As of mix quarters first benefited cabin mentioned, to quarter and compared I mix brand per previously XXXX XXXX.

the XXXX quarter brand the for and of cabin the reflect and implied diems Our year. for mix changing the second net guidance half throughout per mix second

XXXX, up During has as revenue versus their onboard case been North with and brands other in expect per XXXX significantly be our our and XXXX American diems they brands. were European to the

As less I brands. that the out, onboard is our than on on pointed our European spending previously North American absolute brands

but more gamble a brand bit a guests to little European tend less. drink Our lot

North And onboard the benefit the the a and American and revenue mix. percentage third their historically catch will brands occupancy per they make their during ships, driving European larger from longer brands higher, up we passenger will EBITDA total, with lower filled diems, with per quarters second As changing on brand no adjusted of average. our the up

In occupancy, the remaining cabins continue to close left to to the of cabins. gap addition, we as filled many inside XXXX be or

higher, we our inventory we the net increasingly shrinking EBITDA inside fill remaining last our cabins, diems. As lowering of fill driving our will per average adjusted

than December without for be approximately costs are structure, Now all now ALBD expected XXXX up turning X.X%. of XXXX industry-leading to higher. reasons the per for full point EBITDA versus driving guidance, base adjusted is adjusted cost the our higher costs. to X.X% our Off the right X year but This cruise to fuel

both during the cost expenses operating which record the higher guidance First, on we other with increased sides certain quarter, adjusted driving based, our December occupancy levels booking on the and first Atlantic levels driving food of but also was higher. EBITDA costs

reevaluated we occurring and we higher and booking sooner thought. customer support costs Next, increased and given are service our around the than levels previously globe staffing levels associated

Third, we with this adjusted reenter the XXXX, EBITDA to again, expenses in will strengthening remaining its idle capacity, demand, additional service strategic into higher. but means decision made which restart Costa drive for

the reduce hire the resulting of Seaborne Odyssey depreciation back charter higher. drives charter expense, expense adjusted will opportunistic and month costs sale earlier Fourth, this cruise but

gain will be sale, record GAAP the gain on the adjusted a from excluded We will but costs. U.S. cruise

see we opportunities will adjusted I XXXX by also higher. like up higher, tweaking this sound beyond will an EBITDA for Again, a in advertising drive and up further drive even fifth, must broken finally, costs expense XXXX. And more to later and cruise ourselves successful set but adjusted record,

As nimble details amortization, strong opportunities interest Josh morning said, to update Guidance. in the be expense section depreciation found business seek we in back the earlier this our remain to accelerate and The aggressively path we titled and can profitability. press expense fuel release to of continue and issued

take So the time I the to through walk will numbers. you not

thank higher managing interest debt our like was what our it is when However, has us XXXX team portfolio fixed for rate been having significantly than I year-end would a XX%, in of job great XX% environment. treasury protecting debt our to rising with the which rates,

to please these all of first XXXX of the with to slightly billion expense, fuel XX% adjusted our fuel note percentage our modeling represent during Putting the year. year EBITDA we you the expect billion factors of for for half together, full that higher expect $X.X the around of $X.X those MGO for consumption XXXX. Furthermore, we

debt will we finish XXXX Arvia now pay $X of the smiling positive that to export debt. Cruises are we flow credit drew with quarter the quarter adjusted the of to financial our the we We of over $X.X from that free XXXX. $XX be for liquidity, billion up excess cash at first turned down feel XXXX flow over the I am near-term and peak well on position. year our remainder debt describing in expect first positioned I in at we cash our to the report believe And And I are debt P&O Total free delivery. beyond total of of I adjusted positive report full when maturities expect the as I billion when for great time for we $XX.X of total year-end, of billion. XXXX by billion to be approximately down peaked liquidity.

which addition, maturities through $X.X have to a as has free equity. flow improvement back well on and In to gross grade. towers to issue next debt increases managed of durable down maturity our we And growth looking debt year. investment XXXX, revenue forward, I expect drive result, margin our cash and XXXX billion through balances path our And been no beyond substantial adjusted have debt in in intention

our for me call our remind operator, I first over to Before and the let update presentation. turn release website to quarter business you the visit

for let's Now the call open up questions. operator,

with Patrick comes first Truist question of Our the Instructions] Scholes line [Operator from Securities.

you. questions of couple for A

people cabins Did to First play to did say, cruises? higher how any How left you vacations later the about booking January, Alaska That's and at the longer, only quarter, would pricing? then less sell. volumes there. as first shift then volumes how off, you -- you but on, out during European or maybe to quarter and and volumes, sold shifted the talked out that in pricing sort Any say, see but say, of of desirable beginning December my stronger in lower related your it's I question. trended having,

the wave I just period the in business were intended, the discernible. Josh. volumes wave, fact is a is strength. nothing entire pun over this mean the after So No, wave

And left. clear, majority mentioned It's David, And noticeable. left. we're to that not when about up things you're to of the getting just -- see what points the so the summer, ends. we to than it's on in over down just didn't and X talking got that's out less be we've fact only just anything insides historical finally catching the QX then filling

about wave fact We're the we're year. So for and has we that of remainder the the tracking XX% feel real over booked good continued. well,

have And a by the them desirable. those less great They're call just way, in time wouldn't people I different. cabins. And

with on the book noticeable talk the won't I argue in Certainly, conversations cruise, hear my question, comment shorter share direct. direct. especially that, trade, on at you book we Okay. from all? can you about next taking My with Can in that. less expensive you're trends that

And that we working that going back held our Overall, in you what it's we're the my trade as consistent to the say into the they levels up of been to business those levels. direct trade. XXXX with really our And overall, heard we've the said, know and And many get help way to remarks, be to well in up prepared hard we've -- our is brands what fact is, on get well. exceeded achieve. can me

partnership about all we momentum the the do work own actually to to we And continue. our think doing we generation So and interested can on It's expect we fantastic performance that that awareness revenue we've ourselves. trade really help for the just that they've brands. like that date, the made in more more been feel to more just they bring and and trade. have, the the the isn't the Because get our ultimately helps with folks

from line Wieczynski the with question of Next Stifel. Steve

in did fuel in And pretty a FX want to that's your year the it ask David, exceeded about guidance call let's first it, Josh headwinds. morning. EBITDA full And or midpoint by, provided quarter, EBITDA at what and you about we So this significant if look with the just you XX%.

less for just perspective, you're $X the perspective, is, the guess given for seems half look you're you guiding call incredibly, a incredibly that year. little than, billion the demand And the seeing what want let's conservative of we I EBITDA spending whatever at to from a you're what question if So second it. second at look quarter, in it, guiding essentially to

taken that a differently, to little kind you are it slow of in is they of the half right does I year? the So stay the that have if the consumer ask the And where be that should view assume safe good some There second that some some impact now? trying that look, pretty range. and your cabin out just but brand to figure upside out And there mix, change what called David in I'm to mix understand guidance I could be. consumer

mean, Yes. initiative, I already on pull lot we're get Look, I booked. Some we right? guidance that things, set our the amount some bits a already, things good spend, active variables, a can here and has are a of give some based our of range as know. an extent pieces move, of there. mentioned because to forward which like We you XX% We to onboard been little there and

beat to quarter, Overall, own expectations. hard incredibly are working the we first just our like

to we'll do And continue so that.

that's not with to a spending the consumer have level. and booking We seen both and decline respect onboard in activity, pace

So fact way want EBITDA year. the and some hopefully yet maintain stronger that despite our the lead as to through business, to ever -- has does, not hasn't it volatility up it and our we can work there, if out there's that we shown in even it

position the and won't very release needed it of the made is equity you use forward. Josh, solid then, And liquidity now you. that believe company in the you moving press a in Got clear be very Okay.

you but investment-grade call sat not to now it that to a year, important for six the seat a now months. corporation, Carnival, any in thought let's given return So when could your over as status? as to line Have time you've

important a trajectory The free is over get significant certainly that's by of quite goal cash driven to us. all treasurer, there. time. I'm going be to Our former is so for flow

just the We year views This first are outlook. our of full working We on quarter. gave a is world. longer-term

So more talking certainly going about give targets a time. start longer-term me little forward. we'll and initiatives And

that debt. and getting back paying down twofold. remember It's EBITDA both is grade to improving But investment

with prepared none in remarks, EBITDA mentioned see And and so debt. expect four in we do as XXXX, considerably and occupancy. his the XXXX, do be result the CapEx we improved the Josh order paydown to to as on only of accelerate lower And expect in ships a adjusted to able for

from next Hardiman Our with the James question of Citi. line

of about pricing year. we've sort worse, deceleration per the a pricing way the getting I'd course bracing our Is the maybe inter where different ask are space, investors one a are the tells spot the I'm Obviously, like-for-like consumer? lot and there and figure travel we I year. consumer rest any of of space the there's diems as that throughout getting impact? right? the better diems the the the questions a way. just in Obviously, through or for to at previous power if per Maybe what given tease Obviously, work cabin a out us of So affecting out been. trying way of mix think very to is any way in to over about of different mix like-for-like guess sort

Sure.

Like-for-like, question, the the James. for thanks So up. pricing is

happy. very So we're

based not for, very desirable said, our I and our up cabins. guests David down, They're it As said, are paying line, more more what looking was good for onboard. portfolio are and really and a spending fleet on they're I it undesirable wish they had and particular

an value to one is recession, from because for to than why so a Anywhere long time XX% are holds business incredible hearing the land. last very got we the XX to good years, you model our up in if bad, here for XX% remember and remember I've and well. holds well And it And been the this I -- and up reason a lower comes, land-based times equivalent.

go the past do how more for are important, that figure out to it we their money not provide to used further, my now better even than give is And value so in looking when people will which I make incredibly still vacation, dollar people for be their so can up.

So good very we feel about our position.

by the And only be lot sort yields The higher that is prepared to that of we did a to expect mix to fourth I about time that fourth we did were say we're And an indication that pricing XXXX. the in quarter, get my expecting. issues add have we to up can is I quarter remarks disappeared. thing the that of of the talking compared

Pretty much them. all of

All of them, yes.

Got it. then sense. on the cost And maybe Makes side.

in up XX.X%. currency, costs think XX.X% to were I X% first So Constant the quarter. roughly

then quarter, was second around like The seems numbers. X.X% X.X% costs of within year. the it But some to moving for those there

of So to trying guess the coming just are think of presumably I down. those sort back an half year, numbers about the exit I'm rate.

in spending year. opportunity later of costs of move base versus You growth on in there to come level normalized an cruise ultimately, Or advertising as said you're for the going But of more sort should rate XXXX? think we I is the 'XX down a beyond to about be 'XX? still net

Sure.

So the occupancy things drove quarter, with, mentioned that but to did that. you the it and go a to second. first up two from the There quite second to increased was bit, remember, quarter -- there really we start were the first

percentage in You're a talking about increase occupancy. point X

a I'm difference. of very couple And of the That points so happy. was

the of which also dry The other of number the X because quarters. dock, was worth dry was points docks between

And of X-point just was there the So timing also X R&M differential items. two of expenses. those is

run you do than but judge before, rate full as times fairly many our said year year, hard better reasonable always think for gave particular forward. quarter. And we've for the that's costs we not And us to the going do, that. and as But we any work guidance about a full we'll to on

that want little One still we're a bizarre thing we're to in of operating bit clarify because a year. just this under comparison structure I

the talking which in got a about and when you we're about this year you then XXXX exit X-year to XXXX, gap So talk comparison. versus rates, is remember,

does 'XX what talking about 'XX. look 'XX we're not about yet, like, versus remember, talk that's we When which

we're from how that different industry, last of very and will the look So picture the a very, environment to better give XXXX. was year of that doing the describing which sense versus normalized we're

line Next Research. question Wightman with Wolfe from Fred the of

about up comments you the you just I into also sooner. that all of made curve, then you of gap bookings European bit that bridge of booking North we there is a consumer help to maybe on Can follow up service sort the recently the together us I and the consumer. guys where American is coming which just picking North consumer all back trailing sort for that wanted European talked piece at fleet specifically. look cost little the and America, specifically? I about with some if know But think broadly

good Yes. perspective. And news is it all from our

even brands we continued news demand of to despite They've they're more outperform our their than they've good they managed booking All But window operating over have under. experiencing extend demand. that the close-in UK the Europe expectations environment that to is strong generating are closer this said, as on period. also normal, in fact the been the and over

in So what holiday normalize but short well choices their are the not also that to making tells they're term, think beginning for only they advance. you demand getting is and about

the for And board, so pretty much across brands. Europe in European by we are supported we're sentiment -- strong our being really consumer

about what Is previously. ship guys you then just ship also And several and have that. Perfect. years comment consistent think to talked beyond was sort for there about for that with the that's or the 'XX, of in I still past But cadence expecting annually deliveries on plan? one two the ships zero pipeline,

starts Whether still be the XXXX question It certainly it after XXXX a mark. that in certainly one plan, starts -- or two. or will is that's

next focused, our ever it's down we're it the think And over about through it's if as way pipeline dwindle lowest the so X-plus year. the you been to continue years, very will and we much get the

UBS. the Next with question from Farley line Robin of

outlook. on to yield clarify your the to wanted Just comments

You be. QX per quarter that XXXX. that said higher will in elsewhere of not suggesting would be think I above you levels, talked think sort QX said full diems be XXXX And be back you each to But occupancy than would by QX. about yields that I would

So like it seems above to in that QX. should levels yield get XXXX

So in. I'm if factoring there piece you just could there's that, maybe a clarify not

basis. do everybody that. But of I Yes. indicated, to Well, have, guidance each And what you and better for trying up for in to the with of the not every the mix was for indicate give work and didn't all a terms to hard I here talked on just pricing we'll fully that and I'd understand we than had reason we sit rather quarter that about each guidance like-for-like wanted fourth we quarter. before basically, was give we issues specific said quarter.

Okay. Great.

can't yield not So you right? understand be Thank you're saying 'XX, it just you. you're but not that. clarify above in that guiding for I wanted QX, definitely to

you And discounts. that to being FCC price for like expression -- then about also just your give talked and in the wanted the year, higher adjusted for release, the you

When I X% be that be discount you you you point percentage 'XX? be only not so. a would that FCC, suggesting if for think 'XX will FCC you that, per pricing that discount FCC versus say would that 'XX. Because be are will up the X% I think in to elsewhere, include you above said adjusted for would pricing or diems

you're sort I higher the asking... calling So out it's of In I'm why that I'm don't FCC? if other if adjust just for you words, wondering know

problem, Robin. No Yes.

X% are Just that's we for the and to inclusive per diems drag. to be net of year, clear, up projecting FCC X%

would be even without higher. that it So drag,

It quarter that every last would the been going -- couple be of up either way. after calling we've just We years. out

I So it'd call either continue up way. be it out, guess to we but

is right that the only FCC thinking X% in about is drag, range it would -- And somewhere that be X% or... the

second the Yes, for yields higher little bit X% little in half in net year. first the total the a A bit lower half. and on

that Okay. FCC 'XX, by then 'XX? to after year, Great. And use next is it by fair be wouldn't assume any there

It's Less than a just X.X left over. minimal. point. few It's

Credit Chaiken Ben of with line the from question Next Suisse.

higher On right And is? it and follow-up. ballpark future? this advertising then And is then of one, expense. what the spoken absolute incremental able does run net to it dollars, points on cruise couple or Are either cost, spend the I've quick normalize one about rate? the in you've this last got calls basis Or you

Yes.

net XXXX, as the run X.X the cost is And So versus it's a cruise far about on Josh? basis, increase. net concerned, rate -- net cost cruise of as points,

Yes.

the throttle means and had because by brands didn't we pleased per hoped. work what's We're quarter-by-quarter very We we're ALBD than X.X take points, can things. understand So as and others it working with with literally the up a Frankly, back. not, well which as throttle work results the what's in some and on can to less still we're cruise basis. space spending up very nature, we

And other so into brands they're the stopped and have it leaning doing things.

what it to over been you, should it a what if So But experienced and last what brands that will we can pretty as quarter, significant tailwind be. a you tell for I the you able back be think the accentuated take months really last think step the and achieve. have fluid over about six that's the results we've

Understood. impact And you relative the provided FX XQ last then on call, to fuel a for 'XX.

You million. said it XXX was

look XQ, does to at think I XQ subsequent then moment? XQ…? kind like of it million. it that, And color on for XXX moved any to What the

numbers So you. let me detailed the get for

XXXX? about talking versus You're

Yes.

the for there'd headwind On the for last XQ you be $XXX relative XQ fuel. to FX -- you mentioned million you on that mentioned call, 'XX call, said XQ, and

Yes.

Okay.

saying XQ, moment? for like does And what I'm well. as color what very XQ -- be XQ any helpful look at that the then on would

can QX QX, I give I don't QX million full $XX of you be but about So have and headwinds. and the currency year. would fuel

see. Let's

it's year, and full call fuel $XXX the see, it. -- is For million, currency let's

Montour. Our Brandt line question comes of next from the

did much book with advertising would was that place pandemic a last plenty for net put fleet the in impact overhaul starting in yields but drag have see residual in of now in the during year. large you 'XX push, guidance, It's the to hard there's guys just in that your yields, of the right, a little hypothetically and mixed obviously versus positive 'XX. So before

Eastern out overhaul? material seeing a you I that maybe -- tailwind are tailwind adjust -- do when guess take out have drags seeing Europe, and Asia you Australia of like feel this you that you the year all So and and a you're from

And looking together everything trying to is a and there's we a period. period four-year to happened of up at the do. yes, difficulties mean are, I one piece builds we over So, four-year the that's lot answer that of where a

which when close order of our gap. think Petersburg, get be lot just have deliver exclude to then exclude a exclude diems business QX, You you about, the there's restart overcome able to higher quite Australia's that and and we we and St. per say in X.X% as in XXXX Asia was to

we about the business. all and probably I, So, real but you tried the think banter think down see we've go to are I bits you that different boil we directions, drivers what to of enough we in it can can pieces I banter and Brandt, the

the I noticed was -- XQ 'XX follow-up EBITDA a Ben's about commentary was was months record three from maybe season. again, question about then feel guess looking ex-fuel ago essentially FX, that, your just before ago. three ALBD that you unchanged three Josh, question year, But wave months rivaling on And do I comment exiting this better at to is, months commentary per any and that the later?

Yes.

I bet You do.

to forecasted working working hard We the we come make expecting that everybody We're hard. the incredibly first just to on we're as We're is for and quarter. X/X to as So we're quickly got can. -- working about outperformed in fruition XX that we XX. basis. quarter And second

Georgieva Assia with of line Research. the from question Next Infinity

Congratulations on in new term longer terms the very of question I builds. good results kind for again, QX. question of a had Josh,

it the growth, are you you conservative, background three investment of the treasury see from get in again can with when usually to put point continuing the we the reduce we acceleration years the to more thinking are to rate capacity that the fact sort build new takes -- of Given once and four or we of being grade? of thinking growth, order,

that one ships to, I philosophy once We tried ordering we year think, by start a to using our give two again.

order, long I feel, its expedition we cash for plus capacity down a getting lower And pay debt. XXXX, know through we'll see. nature sets it up for generate anything that's well be to and to us small push, will ship incredibly experienced free able 'XX, have flow, so, be very, 'XX ships we're not very we increase a than time. four that by to of It with very a on rate

much X.Xx for get As EBITDA, David and future. increases, build back debt decisions be frankly EBITDA to be new to our better mentioned, positioned making the to

Okay, per brand that corporate the per in one makes believe we looking per perfect year that entity? maybe the to were two as past to opposed sense. I ships or

have probably much between a been brands. nine ships would have five rate. and That depending No, We on brand. growth Remember, three no. year the higher no, no, a somewhere we were

So time. strategy we've growth newbuild over our to got diversify plenty

Next Stanley. Morgan question with of Stephen from the Grambling line

Just thinking about pipeline. the ship

the could actually the adds, one where cycle gross we going any for Or but of pull is maybe year? fleet did you retirements be we expect about to normal Are side talked forward more retirement in that or the the other equation less You the some per should forward? lower two attrition. now

been at have definitely we forward Yes, later could a ships that done some pulled time.

time, So of we'll pick years, that talking then cadence over not of imminent. nothing you're back couple and about anything significance up probably but anticipating the the next over

the impact you private And you a may islands, of projects, Bahama, talked a the then the in how compare past? helpful. few non-ship done what talk and to yields Grand could about those you've potentially how more et related bit That's cetera. investments Can about

mean, in Yes. I the Well, we a phenomenal a footprint as starting point, have Caribbean.

Bahamas. the of Half Moon pretty the being Cay I mentioned think in remarks, I in prepared a my much jewel Caribbean

also the generate able destination on being absolutely in not talking side, side. of the short us distance on side, Florida, the yield put on With the Coast brand, from very the South incredibly We're East which carbon the States, experiences on Cruise only ability help Line footprint to cost helps port, tremendously about a for cost more United attractive side. Grand another us differentiated the to that will Carnival the through but

that we're destinations. us that, our of Moon a ticket because generate better board lot onboard open form bring in spending guests, the on to island, with more pricing Cay, pier, to what adding doing Half of bigger more guest that for spend only a by also ships opportunity a on to enhanced And but not more will and experience up opportunity

Next Susquehanna. the Stathoulopoulos question from with of Chris line

color, cost should marketing we perhaps here think how efforts about time be the some to said, elevated of in lot guide as a frame versus we marketing initiatives we spent year, various Could full could initiatives should for going these buckets, EBITDA you what's, and and those efficiency of through costs net remarks. revenue for about or any you revenue prepared for give incremental as in these think you how related we put the Josh, midterm? here for your likely help the

to So answer I'm going question. try to your

be of is for to be on, brands those Some driving The search fairly at we've can things and see begin engine that can measure we looking us have things, results. optimization, a for the our immediate ability in-year to better with. what us right? seen more working been people to the benefit, We

brands There here that specifically doing introducing fare pretty brands that are other We things some can fares, quickly. have that never types up we're non-refundable never doing respect in had with done weigh before, to that deposit have that.

this able around are how but better There market, as our basis differentiated time. frankly, demand that further, that having being the other driving for a to we're over longer-term just more things impacts in are going out on year, be be much not to well, primarily extend able and to booking being managing curve

easy not fit buckets looking I'm I'm candidly, your what don't year, particularly for. particular so this think So of it's you to to were into sure but I for try if answering that's question,

is did of all a there over the guidance. add on our efforts that only We The period. that thing want cost cost comparison efforts build to I numbers, pointed This going all to company. four-year are the around in into a Remember, efficiency is -- of are lot Josh out, different XXXX. as

a But years. been we inflation lot four So as efficiencies there of of a that lot built has during well. have

of advertising, global cost looking concept And our but can spend we're class looking certainly to And the do standpoint, at multiple at know we will which benchmarking, that better? to things structure, business how we've operational are want That's and We're an sourcing like maintain a same ships the doing our improve? How further and to across of we stress just seeing already. we can we're an that. looking We're our ways brands. benefit how overall ongoing, Yes. starting continue, always leverage we some We're we back through from initiatives. step throughout. industry-leading of with tried the taking from

really our XXXX. benefiting in we will make in way Some as of which factor through start XXXX and

direct more a Okay. will. bit a follow or question, up, And to you little tougher of if

from mix, around recovery. your we cost of accelerate around you part The around kind would here margin I that is if of some is brand up some and at your for X% January reason, stock Carnival guide help if points capacity typical or that into around capacity about your the confusion the and was there's sort up that, the time, sort of unit think X.X at that guide enthusiasm mid-February of guide look cabin of a And So believe and December. will.

And response? with is going But So that then will? here the some and to concern to question around not guidance what I or of liquidity, say, off we And would in the would and if for the revert today what what then risk its say of gone the back that sort playbook, I at pricing higher that that by X.X you mid-single-digit growth sort this capacity really would the is here integrity Carnival is old guide you of is a just first the mean in table. have where update numbers cost I've today response here? the to -- Carnival half, say you least

Sure.

that what what in we're the our cost of were So now brand difference of we quarter from saying because until last been just seeing the doing. of in to because clear, demand capacity strength is be for we've only the

is going introduce to ship earlier actually to because drive to which opportunity expected, a the have help we We than liquidity going it's EBITDA.

that about good decision. very very, feel we So

record have cost doing actually real track a well on side. We the of

about served. maintain holds. are the well in last if the that wave, their then record we're can that breaking given of enthusiastic now else we pushing think quarter we plans, just I Everything still we'll and So forward. more brands that had in be discipline, type set we fact more talked We're

And on November. earnings we of early And higher our majority the cost. the last remember, very The back associated call increase I our to forecast the We add occupancy. together we have put December, month. was would -- like with give in in

that Friday, throughout forecast December, the we bookings January put of and all so Monday saw had Black that and Cyber record together And that February. prior was we a to

on got go denominator change. So costs a the your are up when little doesn't or bit because unit a ship, remember, extra change the going ALBDs board occupancy to basis you've the on don't

very So adjusted news, liquidity liquidity. higher, -- driving good driving it's all EBITDA improved

confident in back than -- before. more are we December, we And indicated so far as than were Josh today we

last think I Operator? has to this the question. be

sir. Yes,

One more question.

We'll with Golding from Capital. Paul the take Macquarie one more. last question line The of

other Is of lot I of a reinstatement that terms layup, ship and of wanted way dock to ask from the for perspective. ship. I a cold the is this is to under in and a quantification been potential dry operating through, of this and quantify through us a around impression a I of that has us But left? there what's think for lot COVID recognize that? there warm worked this were a

change? year but Australia think Asia we marketing, as at on anything look then cadence, we spend, to on and And necessarily relative total offset the next year, cadence secondly, about the restarts and in not

Yes.

or into concerned, is as lot dry into dock either a ships yes, far dry in dry were ship, there of every have depending mind, of five dock twice the five ship, went go on the as to keep years So once years. But that last the that year. on every depending ships age

an the do are of unusually basis we regular go year restart indication. lots do the dry dry a to as and restart, expect far we're that thereafter So was year. because every an the on vary, it's forward. we and -- but to there this cadence every concerned? differences, as docks year going on And XXXX year as docks of and high have is give we try They always

quarter-over-quarter the from I out. of Things for advertising it's consistent year. On quarter-to-quarter, but is front, nothing, think, worth the pointing do the rest pretty slide

change, plans indicated before. And might as our Josh

that So it's of very give to detailed hard level guidance.

you. and So with for thanks, say that, I quarter. next have you joining to talk Thank everybody, to

thank call. ask today's That please your and disconnect to you for concludes participation We lines. your you